UltraTech reports net sales of US$1.64bn

UltraTech Cement Ltd (Aditya Birla Group) has announced consolidated net sales of INR135,960m (US$1.64bn) for the quarter ended 30 September 2022, versus INR117,430m in the corresponding period of the previous year. Profit before interest, depreciation and tax was INR11,030m and profit after tax was INR7560m, compared to INR19,470m and INR13,140m in the year-ago period, respectively.

Energy costs increased 58 per cent and raw material costs rose 18 per cent YoY. UltraTech achieved capacity utilisation of 76 per cent as against 71 per cent during 2QFY21-22. Domestic sales volume grew 9.6 per cent YoY, despite heavy monsoons through the quarter.

UltraTech commenced 5MW of waste heat recovery capacity during the quarter. Green power now contributes 19 per cent of the total power requirement. This is expected to increase to 36 per cent by the end of FY25.  

The company’s first phase of growth launched in December 2020 is on track and estimated to be completed by the end of FY22-23. During the quarter, the company commissioned 1.3Mta of brownfield capacity at Dalla, Uttar Pradesh, taking the total capacity in India to 115.85Mta and 121.25Mta globally. In the second half of this year, the company will commission another 15.4Mta of greenfield and brownfield expansions and start the next financial year with a capacity of 131.25Mta in India.

Work on the second phase of growth of 22.6Mta announced during the first quarter has already commenced. The main plant orders have been placed and civil work started at some sites. Commercial production from these new capacities is expected to go on stream in a phased manner by FY24-25. Upon completion of the latest round of expansion, the company’s capacity will grow to 159.25Mta.